Jane Gratton, deputy chief executive of the Staffordshire Chambers of Commerce, said rates and energy costs put a huge cost burden on firms, jeopardising job creation and impacting on investment.

"Businesses cannot absorb any further increases in costs," she said. "It is now time for a complete overhaul of our outdated business rates system.

"At the same time, Government must do more to support manufacturing firms who need security of energy supply, stability of energy prices and a competitive tax regime.

"The threat of power shortages, spikes in prices and an unrealistic taxes are damaging our international competitiveness and will drive business investment overseas."

The British Ceramic Confederation (BCC), based in Stoke, has campaigned tirelessly for action to be taken to reduce the UK's vulnerability to gas shortages.

It fears the perception of poor energy security could stifle investment and growth among its 100 member companies.

In her submission to the Government, chief executive Dr Laura Cohen said: "This volatility means the market does not work well for our members. One was driven to close their plant and lay off staff in March 2013 due to high prices.

"Others refuse to invest in plant that will be damaged if there is unplanned loss of gas or electricity."

In last year's Budget, Mr Osborne announced that the pottery industry would be exempt from the Climate Change Levy (CCL) and Dr Cohen said it was crucial compensation and tax relief schemes for energy-intensive industries are widened.

She said: "The tax exemption will not be a game-changer, saving about two per cent of energy costs only for our members, but it is an important signal to companies in these sectors that the UK Government has understood the cumulative climate change-related tax burden in the UK and is taking the threat to international competitiveness seriously."

Last week the Business Committee of MPs urged ministers to give a six-month rates amnesty for firms occupying empty properties.

Sara Williams, chief executive of the Staffordshire Chambers, said the tax impacts on business survival, not only for retailers, but also firms on business parks and industrial estates.

She said: "To ease the burden on small firms, an extension of the temporary doubling of small business rate relief until 2016 would be appreciated.

"However, we believe it is time for a fundamental reform of the business rate system to stimulate enterprise and growth. More businesses paying less business rates will generate overall a greater contribution to the local and national economy than the present outdated system."

Eddie Wright, chairman of the North Staffordshire branch of the Federation of Small Businesses (FSB) said: "The Chancellor should look at 'focus and delivery' for initiatives already announced to create long-term growth for our members and other small businesses.

"We welcomed the Government's recent moves to support employment, notably the Employment Allowance and a pledge to cut red tape. The focus now needs to be on addressing fundamental structural issues."

John Pitchford, head of corporate banking for Barclays in Staffordshire, said: "Over two-fifths of businesses feel positive about the economy, which is 20 per cent higher than the same point last year, so let's build on that momentum.

"I believe that this budget is an opportunity to think positively about how to create the right conditions for long term, sustainable success for the UK.

"The Government should consider ways of creating a world class ecosystem for entrepreneurialism.

Comments

All businesses should pay a business rate regardless of whether they occupy a business premises or not.
This would reduce the current overall individual business rate and possibly increase the overall tax return.
The individual return by the business owner should be considered by the annual turnover and not the outdated system of rating the business dependent on square measurement.
I